DLF seeks Sebi nod to redeem Rs1,600 cr MF investments
04 November 2014
Real estate giant DLF, which is barred from accessing the stock market for three years, now wants market regulator Securities and Exchange Board of India (Sebi) to allow it to redeem Rs1,600 crore of its mutual fund investments.
DLF has made the request through an affidavit submitted to the Securities Appellate Tribunal (SAT), which is hearing DLF's appeal against the ban imposed by the watchdog last month on the company and six of its top officials (See: Sebi bars DLF and its 6 directors from markets for 3 years).
SAT, a quasi-judicial body, is hearing an appeal by the Delhi-based developer over the Sebi-imposed ban on the company and its six directors from accessing the capital market for a three-year period.
SAT has asked Sebi to file its reply to the DLF petition by 30 November and directed the petitioner, DLF, to submit its rejoinder by 8 December and posted the matter for final hearing on 10 December.
At the last hearing, on 30 October, SAT had asked DLF to specify the timeframe, the requirements as well as the end-use of the fund as also to detail the period of interim relief.
Sebi had, on 14 October, banned DLF and six of its senior-most officials, including founder-chairman K P Singh, from capital markets for three years. The company challenged the ban in SAT and sought an interim relief on 22 October.
The Sebi action followed DLF's non-disclosure of the details about three of its 353 subsidiaries / associate companies in its 2007 IPO filing.
While promoters own 74.93-per cent stake in DLF, foreign institutional investors have close to 20 per cent and retail shareholders and others own about 4 per cent.
DLF and its board continues to hold that the company has not acted in contravention of law either during its initial public offer or otherwise and that all of its actions were guided by the advice of eminent legal advisors, merchant bankers and audit firms.